5 June 2009 in The Daily Tribune
P22B Aboitiz power venture gets perks
AP Renewables Inc., which is owned by the Philippine Hydropower Group, the holding company of Aboitiz Power Corp. and three other major firms were offered
tax holidays under their proposed power projects that would entail an estimated combined cost valued at P27 billion.
The Board of Investments (BoI) has approved the P22.725 billion power generation venture of Aboitiz along with the P4 billion two biomass power projects of Global Green Power PLC, and another biomass power generation activity of Sure Eco Energy Philippines Inc.
These projects were listed by the BoI as qualified for both fiscal and non-fiscal incentives on a pioneer status that include a maximum tax holiday of up to six years.
The biggest was the planned operations of two existing geothermal power plants located in Tiwi Albay and MT, Makiling, Makban in Laguna that were both cquired by the group of Aboitiz from the National Power Corp. (Napocor) in May this year.
The power facilities have a combined total capacity of 747.5 megawatts which will be sold mainly to the various industrial consumer accounts and power distribution utilities being supplied by the Napocor.
Aboitiz intends to operate the facilities starting June this year using renewable energy. It will initially employ 442 persons.
Global Green Power’s two biomass power plants in Mina, Iloilo under Green Power Panay Philippines Inc., and in San Leonardo, Nueva Ecija under Green Power Nueva Ecija Philippines Inc. was the second biggest project.
The firm is a joint venture between Filipino and British companies, with the Filipino partner as the majority owner holding 70 percent stake.
The firm intends to operate these facilities to have an estimated capacity of 17.5 mw each. The Iloilo plant has a total project cost of P1.951 billion, while the Nueva Ecija facility will cost P2.002 billion.
The biomass projects will utilize rice husks, rice and corn straws, coconut husks and bagasse. Each plant would require around 400 to 500 metric tons of biomass per day.
The generated output will be sold to electric cooperatives, investor-owned electric distribution utility and other power off-takers via the sub-transmission lines owned by these cooperatives.
The two projects are expected to generate jobs for 140 persons once its starts commercial operations in January 2011.
Another biomass power project was proposed by Sure Eco Energy which is a partnership between Filipino and Japanese investors. It intends to engage in the conversion of waste into energy.
It plans to process agricultural by-products into energy in four different locations including San Pedro, Laguna with 250-megawatt (MW) capacity; San Jose, Lipa City with the same capacity; and in Natividad Nueva Ecija, 60 MW; and in San Vicente, Sumilao Bukidnon with 950 MW.